Thailand Legal Cannabis Market Size, Share & Trends Analysis Report By Derivative (Marijuana, Hemp), By Sources (CBD, THC), By End-use (Medical Use, Recreational Use, Industrial Use)- Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2022-2030

According to Nova one advisor, the Thailand Legal Cannabis market size is expected to hit around USD 9.18 billion by 2030 from valued at USD 120.3 million in 2022 and growing at a CAGR of 59.4% from 2022 to 2030.

Key Takeaways:

• The hemp segment dominated the thailand legal cannabis industry in 2021 and accounted for the largest revenue share of 89.4%. Growing usage of hemp for industrial purposes is one of the key factors fueling the segment’s growth
• The CBD segment held the largest revenue share of about 69.4% in 2021. The growth of the segment is attributed to the rising acceptance of CBD by consumers. However, the THC segment is expected to grow at the fastest CAGR of 61.4%
• In 2021, the industrial segment held the largest revenue share at 82.9%. Growing adoption of CBD by various industries such as wellness and cosmetics, food and beverages, and others are projected to boost the segment’s growth

The growth is attributed to the rising usage of cannabis for recreational and medical purposes. Cannabis legalization has opened new revenue-generating opportunities for various industries in the country. The adoption of CBD oil and tinctures for treating various ailments like nausea, anxiety, and cancer along with the rising prevalence of cancer are some of the significant factors boosting the industry’s growth.

The growing burden of chronic pain has also augmented the rise in the usage of CBD for treatments related to pain management and thus, positively impacting the market growth. Various studies have shown positive outcomes of marijuana and its derivatives to treat symptoms of several chronic conditions. For instance, it has been effectively used to treat patients dealing with chronic pain, nausea induced by chemotherapy, and neurological diseases such as Alzheimer’s and Parkinson’s. Hence, FDA and other government organizations are permitting marijuana derivatives for the prescription of several diseases. This is one of the key factors for the quick turnaround.

In 2018, Thailand legalized the adoption of cannabis for medical purposes. Furthermore, in June 2022, the government decriminalized the distribution, cultivation, consumption, and marketing of all the parts of the cannabis plant. The Thai Food and Drug Administration has also removed the cannabis plant from the Category 5 narcotics list. Although, smoking cannabis in public areas is still illegal.

Furthermore, the rising disposable income of the country, increasing healthcare expenditure, a surge in social acceptance of CBD for its therapeutic applications, and an increasing number of product launches, along with improvements in intellectual property rights of Thailand are some of the key reasons that are expected to fuel the business growth.

Moreover, with this legalization, more domestic players are planning to explore the CBD market and key players are also planning strategic initiatives to expand their product portfolio and regional domination through mergers & acquisitions, collaborations, partnerships, funding & investments. For instance, in December 2020, Tilray Brand s Inc. merged with Aphria and will operate under the name Tilray. Such factors also fuel the industry’s growth.

The growing trend of cannabis-infused food and beverages and the rising adoption of CBD oil by cosmetics and wellness industries also boost the industry’s growth within the country.

Report Scope of the Thailand Legal Cannabis Market

Source Insights

The hemp segment dominated the Thailand legal cannabis market in 2021 and accounted for the largest revenue share of 89.4%. Growing usage of hemp for industrial purposes is one of the key factors that fuel the segment’s growth. Industrial hemp is grown for its seed and fiber. Hemp seeds are highly used for the production of oil which can be further used in lamp oils, paint, varnishes, and ink. Hemp is also used for the production of ropes, Conestoga wagon covers, grain bags, and clothing.

On January 25, 2021, the Ministry of Public Health (MOPH) allowed commercial production and commercialization of hemp. However, the government agencies have limited its importation only within government bodies for research and medical use until January 2026. The Thai government is promoting the private sector to focus on hemp commercialization as it will boost the country’s economy.

However, marijuana is projected to have the fastest CAGR of 86.9% in the forecast period. The growth of this segment is attributed to the growing acceptance of marijuana by consumers and increasing awareness about the health benefits offered by marijuana. The growing healthcare sector, increasing investment in the R&D of marijuana, and growing awareness about the therapeutics of medical marijuana drive industry growth.

Furthermore, after the legalization of cannabis, various industrial sectors are infusing marijuana into their products like tea, soaps, toothpaste, and others. Increasing FDA approvals, development of the proper regulatory framework, and growing investment in this segment further propel the industry’s growth. Medical marijuana is highly used in the healthcare sector for treatment and research studies due to its therapeutic actions. The marijuana segment is further segmented into flowers and oil & tincture. Marijuana oil and tinctures are being extensively studied for numerous medical applications.

Derivative Insights

The CBD segment held the largest revenue share of about 69.4% in 2021. The growth of the segment is attributed to the rising acceptance of CBD by consumers and scientist community. CBD is highly useful for treating epileptic seizures and for nausea in chemotherapy as it has lesser side effects than traditional medicines. Although there is no scientific evidence, CBD is considered to be useful for anxiety, Crohn’s disease, Parkinson’s disease, relieving pain, and other chronic conditions.

Furthermore, CBD is highly incorporated into food products, especially dietary supplements and in the cosmetic industry. CBD is non-psychoactive and CBD oil highly used in the wellness industry as CBD oil reduces post-exercise inflammation and promotes muscle growth. It also possesses anti-inflammatory and anti-acne properties. These factors are expected to drive the growth of this segment.

However, the THC segment is expected to grow with the fastest CAGR of 61.4%. THC products can be useful for treating short-term sleeping problems and reducing sleep disturbance. THC is also used to reduce muscle spasms and chronic pains. Growing initiatives by the government to increase the adoption rate of THC by various industries is one of the key factors boosting growth.

Application Insights

In 2021, the industrial segment held the largest share of 82.9%. The growing adoption of cannabis by various industries boosts the growth. The growing incorporation of CBD into the food and beverages sector boosts the market growth. In May 2022, Charoen Pokphand Foods PLC, Charoen Pokphand Produce Co., Ltd., and Gunkul Engineering PLC came into a partnership to develop cannabis-infused food and beverages.

The increasing focus of alcohol companies on CBD and rising R&D activities for launching new products are driving the segment growth. CBD is also largely adopted by the wellness and cosmetic industry due to its anti-inflammatory and anti-oxidizing properties. CBD is also being used in various industries such as agriculture, paper, packaging, and various other industries. Thus, promoting the segment’s growth.

The medical segment is also projected to grow at a lucrative rate. According to various studies, medical CBD is safe for treating patients with chronic pain and neuropathic pain. The rising percentage of clinical trials with marijuana to treat chronic pain and neuropathic is one of the key factors, which leads to the rising usage of cannabis in pain management and thus impacts the industry positively. Furthermore, growing social acceptance of marijuana, increase in disposable income, rising awareness related to the benefits of the product, and rise in the popularity of therapeutic properties of cannabis within the country accelerate the industry growth.

Some of the prominent players in the Thailand Legal Cannabis Market include:

• PharmaHemp
• MediPharm Labs, Inc.
• Cresco Labs
• Elixinol Thailand Limited
• Tilray
• Extractas
• BOL Pharma
• Canopy Growth Corporation
• THC Thailand Group Ltd.

Segments Covered in the Report

This report forecasts revenue growth at , regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Nova one advisor, Inc. has segmented the  Thailand Legal Cannabis market

• Source
• Marijuana

• Flowers
• Oil And Tinctures
• Hemp
• Hemp CBD
• Supplements
• Industrial Hemp
• Derivative
• CBD
• THC
• Others
• End-use
• Medical Use
• Cancer
• Chronic Pain
• Depression And Anxiety
• Arthritis
• Diabetes
• Glaucoma
• Migraines
• Epilepsy
• Multiple Sclerosis
• AIDS
• Amyotrophic Lateral Sclerosis
• Alzheimer’s Disease
• Post-traumatic Stress Disorder (PTSD)
• Parkinson's Disease
• Tourette Syndrome
• Others
• Recreational Use
• Industrial Use

Key Benefits for Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the Thailand Legal Cannabis industry analysis from 2022 to 2030 to identify the prevailing Thailand Legal Cannabis industry opportunity.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the Thailand Legal Cannabis industry segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as Thailand Legal Cannabis industry trends, key players, market segments, application areas, and market growth strategies.